- More restrictions required for over-visitation
- Ad hoc marketing and promotions obstructed path
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Ensure all foreign exchange earned is brought to the country
Nilmin Nanayakkara, Chairman – Managing Director of NKAR Travels & Tours (Pvt) Limited, is a dynamic personality who is close to the golden years with his acquaintance in the Travel, Tourism & Airline Industries.
Among the many noble contributions Nanayakkara has made to the tourism industry as well as to the country, one notable initiative stands out “Sancharaka Udawa,” the largest travel trade fair in Sri Lanka conceived during his tenure as President of SLAITO.By 2023, this event, which is held annually, had successfully completed more than ten editions.
In 2022, his “Save the Sri Lankan Smile” initiative marked a historic milestone as the first-ever destination promotion campaign initiated by a private company. This groundbreaking effort united not only the entire tourism industry but also the entire country, addressing the challenges posed by the pandemic and the economic crisis that had severely impacted the tourism sector during those challenging times. This short term tactical campaign garnered widespread recognition and appreciation from the entire industry, Specially for his remarkable dedication and commitment.
He was elected as President of the IATA Agents Association of Sri Lanka in the year 1997-1998. Served in the capacity of Vice President of the Travel Agents Association of Sri Lanka in 2001/2002, and on the Tourism Advisory Committee to the Minister of Tourism in the year 2007/2008.
Mr. Nanayakkara was elected as the President of The Sri Lanka Association of Inbound Tour Operators (SLAITO) for the year 2010-2011 and was re-appointed as President for the year 2011-2012. He has been an active committee member of SLAITO for well over 20 Years and The Hotel Association of Sri Lanka since 2021.
In the year 2010 he was the youngest member in the industry to be presented with a ‘Legend Award’ by IATA Agents Association of Sri Lanka in recognition of his contribution to the industry. Mr. Nanayakkara has served as a Board Member of the Sri Lanka Tourism Promotion Bureau from 2010 to 2015.
In 2023, the Board of Directors made the decision to nominate Mr. Nilmin Nanayakkara, the Managing Director, for the position of Chairman cum Managing Director. This choice was driven by his exceptional dedication and significant contributions, which have extended beyond the company and have positively impacted on the entire industry.
In recognition of his remarkable contributions to the tourism industry over the past 45 years, Mr. Nanayakkara was honored with the ‘Tourism Legend Pioneer Award’ at the Sri Lanka Tourism Awards 2024.
Q. You are a veteran in Tourism, what is your take on the country’s Tourism sector currently?
A. “Certainly, we are pleased that the tourism industry has got turned around after much struggle due to the Easter bomb attack, followed by Covid and the economic crisis running into almost 5 years with a few gaps of extremely short-term recovery.”
“It is acceptable when a country begins to recover after a crisis to see that the bottom end of the market takes the lead in recovery, which is fine. When that happens, in the absence of a marketing drive, future sales would be influenced by the social media sharing of the bottom end, which results in the continuation of low-cost tourism.
“As a result, my observation is that over 50% of the businesses are through unregulated sources, which has an overall negative impact on the economy. This large amount of unregulated businesses in operation is a bane to tourism. Therefore, there is an urgent need to change this pattern by bringing in regulatory measures to the cross-section of the industry and we also need to immediately roll out a national tourism marketing program to be spearheaded by Sri Lanka Tourism.”
Q. Having been involved in Tourism for almost 50 years what are the issues you have identified as the ones that are hampering Sri Lanka’s progress yet?
A. “If you look back, you would find it to be due to the instability of the country that we have experienced in the past from time to time. Successive governments have not stuck to a 5 or 7-year plan. Instead, we have frequently changed the national tag line, not fallen in line with a national tourism promotional plan but have been absolutely ad hoc in marketing and promotions.”
Q. What are your suggestions to rectify these issues?
A. “The country needs to urgently commence global promotions, working closely with the industry experts and the national carrier wherever possible. It’s even necessary to tie up with other regular airlines on joint promotions, as there are many destinations that National Carrier is not flying to.”
“Promotions alone will not support the economy to its highest potential unless otherwise Sri Lanka Tourism introduces regularizing in the unregulated channels.”
“It is important to get online tour operators also to pay taxes. If not, they would continue to benefit with no commitment or contribution to national tourism, and further, they will have an advantage of not having to be on an even playing field. Also, to the best of my understanding, almost 25% of the selling price of OTAs remains elsewhere without being brought to the country. Whatever the promotions we do and expanding the tax net in the country, regulating unregulated institutions will go astray if the due foreign currency is not brought into the country. It is an extremely important area to keep a tab on.”
Q. what were your experiences during covid pandemic, and what contingency measure should we take if we are to deal with another issue of that magnitude? Are we prepared?
A. “All of us realize in our respective industries and in day-to-day life how depressing it was and how badly affected the economy during Covid and the only way for us to be prepared to face such a situation is through a fast recovery. Also it must be ensured that all foreign exchange earned is brought to the country, not only by the members of the tourist industry, but by all export-oriented industries. Besides, the government needs to realize, facilitate and drive the country towards more and more exports.”
Q. We are targeting 3 million visitors and 5 million revenue, what are your views on that?
A. “Looking at the first five months’ arrivals, I doubt very much us touching the 3 million arrival target. May that be a good wish and let us hope for the best. But in my view what we can realistically look at is about 2.5 million tourists. Of course, a 5 billion dollar earnings from 2.5 million tourists is likely, would be possible.”
Q. What is your take on Over- visitation?
A. “Over-visitation is an absolute mess, not only in Sri Lanka, it can happen to any country. We are pleased that the government is looking at opening a few more blocks in Yala and promoting through different gates. It’s quite sensible. At the same time, I firmly believe no vehicles should be allowed to go into high-demand national parks with just 2 tourists onboard.”
“I believe a system should be introduced to have a minimum of 4 tourists in a vehicle. Further, entry to the park should be controlled with a capping, which can be done through online sales and leave a percentage of approximately 20% at a high premium price.
This may be a probable way to control over – visitation in places like Sigiriya as well.”
Q. How has your company fared in the many years you have been in operation in the Tourism sector?
A. “As for NKAR, the company is 45 years old, and I have had the pleasure of driving the organization from the inception. We have gone through many rapids and on rollercoaster rides. Yet the organisation has continued to grow from very small beginning to the level of being top 4 DMCs in Sri Lanka, reading the TDL contributions.”
“During the 45 years, the company has been awarded with many accolades from national tourism, airlines and principal tour operators and last being in 2024, with the best medium-category tour operator award, best e-marketing promotion award, as well as the pioneer award for myself in the legends category.
‘‘In spite of all troubled times and issues, it’s been a good journey in tourism.”
Pix by Shan Rambukwella
